Question: If the sales tax in your city is $10.5\%$, how much tax would you pay for an item that costs $\$106$ before tax? Round to the nearest cent.
Explanation: In order to find the amount of sales tax you would pay, multiply the sales tax by the original price of the item. ${10.5\%} \times {\$106} =$ Percent means "out of one hundred," so $10.5\%$ is equivalent to $10.5 \div 100$ $10.5 \div 100 = 0.105$ Multiply the sales tax you just converted into a decimal by the original price to find the amount of sales tax that must be paid. Round to the nearest cent. $0.105$ $\times$ $$106$ = $$11.13$ You would pay $$11.13$ in sales tax.